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ServiceNow (NOW) Stock Sinks As Market Gains: What You Should Know
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ServiceNow (NOW - Free Report) closed the most recent trading day at $548.69, moving -1.47% from the previous trading session. This change lagged the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 0.96% over the past month. This has lagged the Computer and Technology sector's gain of 2.36% and the S&P 500's gain of 3.75% in that time.
ServiceNow will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.41, down 7.24% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.69 billion, up 24.56% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.35 per share and revenue of $7.39 billion. These totals would mark changes of +24.16% and +25.34%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ServiceNow. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.54% lower. ServiceNow is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 75.74. This valuation marks a premium compared to its industry's average Forward P/E of 25.55.
Also, we should mention that NOW has a PEG ratio of 2.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.08 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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ServiceNow (NOW) Stock Sinks As Market Gains: What You Should Know
ServiceNow (NOW - Free Report) closed the most recent trading day at $548.69, moving -1.47% from the previous trading session. This change lagged the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 0.96% over the past month. This has lagged the Computer and Technology sector's gain of 2.36% and the S&P 500's gain of 3.75% in that time.
ServiceNow will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.41, down 7.24% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.69 billion, up 24.56% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.35 per share and revenue of $7.39 billion. These totals would mark changes of +24.16% and +25.34%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ServiceNow. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.54% lower. ServiceNow is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 75.74. This valuation marks a premium compared to its industry's average Forward P/E of 25.55.
Also, we should mention that NOW has a PEG ratio of 2.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.08 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.